Asked by Leston Alexis on Apr 25, 2024
The perpetual inventory system is a system which:
A) updates inventory only at the end of each period.
B) uses only LIFO method.
C) needs a physical inventory taken.
D) Both A and B are correct.
Perpetual Inventory System
An inventory tracking system where inventory levels are updated in real-time with each sale or purchase transaction, giving a continuous account of inventory on hand.
- Discern the differences in how inventory transactions are recorded under perpetual versus periodic inventory systems.
- Familiarize with the necessity of a physical inventory under the periodic system and its absence in the perpetual system.
Learning Objectives
- Discern the differences in how inventory transactions are recorded under perpetual versus periodic inventory systems.
- Familiarize with the necessity of a physical inventory under the periodic system and its absence in the perpetual system.